More hours, more jobs? The employment effects of longer working hours

Arbeitspapier

Increases in standard hours have been a contentious policy issue in Germany. Whilst this might directly lead to a substitution of workers by hours, there may also be a positive employment effect due to reduced costs. Moreover, the response of firms differs between firms which offer overtime and those which do not. For a panel of German plants (2001-2006), we analyse the effect of increased standard hours on employment. Using difference-in-difference methods we find that, consistent with theory, overtime plants showed a significant positive employment response, whilst for standard-time plants there is no difference at all between plants which increased standard hours and those which did not.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6652

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Labor Demand ; Labor Standards: Working Conditions
• Subject: working time ; employment ; plant-level data ; difference-in-differences ; Arbeitszeitgestaltung ; Überstunden ; Beschäftigungseffekt ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Andrews, Martyn J. ; Gerner, Hans-Dieter ; Schank, Thorsten ; Upward, Richard
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/62443
• Last update: 10.03.2025, 11:45 AM CET